Question: TB MC Qu . 1 9 - 6 8 ( Static ) Division A , which is operating at capacity, . . . Division A

TB MC Qu.19-68(Static) Division A, which is operating at capacity, ...
Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $25 per unit. At the current level of production, the fixed cost of producing this component is $8 per unit and the variable cost is $10 per unit. Division B would like to purchase this component from Division A. The price that Division A should charge Division B for this component is:
Multiple Choice
$10 per unit.
$18 per unit.
$20 per unit.
$25 per unit.
$35 per unit.

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